France’s 10-year OAT yield hovered around 4.86%, easing slightly from a more than two-decade high as lower oil prices prompted markets to scale back expectations for further European Central Bank tightening. However, French bonds remained under pressure amid concerns over the country’s record-high debt and political obstacles to fiscal consolidation. The government’s 2027 budget aims to reduce the fiscal deficit to 5% of GDP, but securing parliamentary approval for substantial spending cuts remains uncertain amid a deeply divided legislature and next year’s presidential election. During October’s Eurogroup discussions, EU officials urged Paris to present a credible budget and meet its commitments under the EU fiscal framework. French lawmakers are set to begin debating the budget’s revenue measures this week. Investors are also watching Wednesday’s US CPI report and ECB policymakers’ remarks at the IMF-World Bank annual meetings for clues on the monetary policy outlook.